The State of Funding in Africa in 2025

Over the past several years, Africa’s private‐capital markets have experienced a remarkable transformation. On one hand, tech‐enabled ventures in fintech, digital banking, climate-tech, and artificial intelligence have attracted billions of VC dollars. On the other hand, traditional small and medium-sized enterprises (SMEs), which drive nearly 90% of firms and 80% of employment in sub-Saharan Africa, continue to be starved for capital.

In this report, we explore the funding that has come in, how much businesses have received, the impact of the funding, and the distribution of funding across various business types. We also highlight how little of this capital is reaching traditional SMEs, the entities that form the backbone of local economies, and share insights and quotes from industry leaders who are on the ground in both West and East Africa.